AES Third Quarter 2016 Financial Review

The AES Corporation
Third Quarter 2016 Financial Review
November 4, 2016

2Contains Forward-Looking Statements
Safe Harbor Disclosure
Certain statements in the following presentation regarding AES’ business operations may constitute
“forward-looking statements.” Such forward-looking statements include, but are not limited to, those
related to future earnings growth and financial and operating performance. Forward-looking statements
are not intended to be a guarantee of future results, but instead constitute AES’ current expectations
based on reasonable assumptions. Forecasted financial information is based on certain material
assumptions. These assumptions include, but are not limited to, accurate projections of future interest
rates, commodity prices and foreign currency pricing, continued normal or better levels of operating
performance and electricity demand at our distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as achievements of planned productivity
improvements and incremental growth from investments at investment levels and rates of return
consistent with prior experience. For additional assumptions see Slide 58 and the Appendix to this
presentation. Actual results could differ materially from those projected in our forward-looking
statements due to risks, uncertainties and other factors. Important factors that could affect actual
results are discussed in AES’ filings with the Securities and Exchange Commission including but not
limited to the risks discussed under Item 1A “Risk Factors” and Item 7: “Management’s Discussion &
Analysis” in AES’ 2015 Annual Report on Form 10-K, as well as our other SEC filings. AES undertakes
no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Reconciliation to U.S. GAAP Financial Information
The following presentation includes certain “non-GAAP financial measures” as defined in Regulation G
under the Securities Exchange Act of 1934, as amended. Schedules are included herein that reconcile
the non-GAAP financial measures included in the following presentation to the most directly
comparable financial measures calculated and presented in accordance with U.S. GAAP.

Q3 2016 Financial Review Call Agenda
 Q3 2016 highlights
 Key market trends and our strategy
 Regulatory developments at DPL in Ohio
 Q3 2016 financial review
 Parent capital allocation plan
 2016 guidance and 2017-2018 expectations

$ in Millions, Except Per Share Amounts
1. A non-GAAP financial measure. See Appendix for definition and reconciliation to the nearest GAAP measure.
2. See Appendix Slide 57 for reconciliation of guidance metrics, including year-to-date differences with GAAP earnings.
Q3 and YTD 2016 Results in Line with Expectations
Q3 2016 Q3 2015 YTD 2016 YTD 2015
FY 2016
Guidance2
% of 2016
Guidance
Midpoint
Proportional Free
Cash Flow1 $400 $621 $1,070 $948
$1,000-
$1,350
91%
Consolidated Net
Cash Provided by
Operating Activities
$819 $915 $2,182 $1,505
$2,000-
$2,900
89%
Adjusted EPS1 $0.32 $0.38 $0.64 $0.90
$0.95-
$1.05
64%
 Year-to-date Proportional Free Cash Flow1 results reflect collection of outstanding receivables in
Bulgaria
 On track to achieve full year financial guidance

Capitalizing on Key Market Trends
 Significant growth potential in gas and renewable based generation
 Presence in markets with strong electricity demand growth
 Largely contracted existing platform and ongoing construction
program offer strong and growing cash flow
 Scale, locational advantage, flexibility and track record of success in
development and construction
Well Positioned To Integrate Low Carbon Generation Sources

380 MW CCGT and 180,000 m3 LNG Storage Tank and Regasification Facility
 Panama’s first natural gas-fired
generation plant
 Power plant contracted under
a 10-year, U.S. Dollar-
denominated PPA
 Well positioned to serve
growing demand for natural
gas in Central America for
power generators, C&I
customers and transportation
industry
 Expect completion of the CCGT in 2018 and the LNG facility in 2019
 Total project cost of ~$1 billion and AES equity of ~$200 million
Expanding LNG Infrastructure

Indianapolis Power & Light (IPL) – Transforming IPL’s
Generation Fleet
IPL Generation Resources (MW):
2007
79%
14%
7%
IPL Generation Resources (MW):
Projected 2017
Key Highlights
 When the investment program is
completed, 45% of IPL’s portfolio
will utilize cheaper, cleaner natural
gas
 670 MW of new efficient gas
capacity (COD 2017)
 Converted 630 MW from coal to gas
 Retired 260 MW of coal
 Remaining 1,700 MW coal assets
are fully scrubbed
Coal
Gas
Oil
44%
45%
1%
10%
Coal
Gas
Oil
Wind & Solar contracts

World Leader in Battery-Based Energy Storage
1,384 MW Under 20-Year Power Purchase Agreements432 MW in Operation, Construction or Late Stage Development
 156 MW in operation
 68 MW1 under construction
and coming on-line in next six
months
 208 MW in advanced stage
development
 Growth through two business
models:
 AES-owned projects
 Sales by AES and our channel
partners to utilities and other
customers
1. Total MW under construction includes 37.5 MW turnkey Advancion Energy Storage sale to SDG&E. Two site locations with total capacity of 37.5MW for 4
hours of duration.

Largely Contracted and U.S. Dollar-Denominated Portfolio
1. A non-GAAP financial measure. See Appendix for definition and reconciliation.
2. Average of medium- and long-term contracts. PPA MW-weighted average is adjusted for AES’ ownership stake.
3. Includes projects currently under construction and coming on-line before 2020, as well as the Southland re-powering project.
2016 Adjusted PTC1 by Currency
Exposure
USD-
Equivalent
74%
BRL 3%
COP 8%
EUR 5%
ARS 3%
KZT 3%
Other FX
3%
2016 Adjusted PTC1 by Type of
Business and Contract Length
16%
41%
26%
17%
2016: Average Remaining Contract Term is 7 Years2;
Increases to ~10 Years2,3 by 2020 as New Projects Come On-Line
Generation:
Medium-Term
Contract
(2-5 Years)
Generation:
Long-Term
Contract
(5-25 Years)
Generation:
Short-Term
Sales
(< 2 Years)
Utilities

1. Commercial Operation Date
 Dominican Republic: 850 MW in operation and 122 MW under construction
 Contracts expiring 2016-2018; one third of capacity has already been re-contracted through
2022
 Our businesses, mostly gas-fired plants, offer low-cost sources of generation compared to
more expensive fuel oil-fired plants, which make up the majority of the system
 Philippines: 630 MW in operation and 335 MW under construction
 Existing plant contracted through 2019; recently extended through 2022 pending regulatory
approval
 Expansion project (COD1 2019) already 50% contracted for 10 to 20 years
 Our plants offer low-cost and reliable electricity in a capacity-short market with significant
transmission constraints and high single-digit demand growth
 California: 1,284 MW re-powering project
 Existing contracts to be replaced with already-signed 20-year contract
 Expect to see growth in earnings and cash flows from this business once re-powered (COD1
2020)
 Locational advantage in the transmission-constrained Western Los Angeles Basin
Well Positioned to Re-contract Expiring Contracts -
Examples

 AES Gener in Chile is largely contracted with average remaining contract life
of 11 years; contracts begin to roll off in 2021 when 8% of contracts expire
 Recent auction for 20-year contracts starting from 2021/22 cleared at
$48/MWh – significantly lower than market expectations, and below prior
years’ auction results which were higher than $70/MWh
 We believe recent auction not necessarily indicative of the long-term price level
 Assumptions underlying the recent auction outcome may have been aggressive on
capital cost declines, load factors, and the all-in cost to support renewable assets
with 24/7 load-following obligation
 AES’ reliable and competitive portfolio is well positioned to meet Chilean
energy needs
Chile Update

2,966
7,739
10
813
1,966
600 3,389
1,384
YTD 2016 YTG 2016 2017 2018 2019 Total Under
Construction
2020-2021 Total
Completed Under Construction Southland Repowering
Year-to-Date, Brought On-Line 2,966 MW of Construction
Projects – On Time and On Budget
Leveraging Our Platform for Long-Term Growth
3,389 MW Under Construction and Expected to Come On-Line Through
2019

23%
29%18%
30%
Leveraging Our Platforms: $6.4 Billion Construction
Program Funded with Combination of Debt and Equity
$1.1 Billion AES Equity Commitment, of Which Only $250 Million Is
Still To Be Funded
US
Chile
Asia
Panama

Positioned to Deliver Attractive and Predictable Growth
 Significantly reduced regulatory, political and hydrology risks
 Exited eleven countries, raising $4 billion in asset sales proceeds since 2011
 Allocating discretionary cash to:
 Earn attractive risk-adjusted return through platform expansions focusing on gas
and renewable based generation projects
 Reduce financial risk through continued de-levering; reduced Parent Debt by 28%
since 2011
 Returning cash to shareholders; initiated dividend and reduced share count by 16%
since 2011

1. A non-GAAP financial measure. See Appendix for definition.
Q3 2016 Financial Review
 Q3 2016 results
 Adjusted EPS1
 Proportional Free Cash Flow1 and Adjusted PTC1 by Strategic
Business Unit (SBU)
 2016 Parent capital allocation plan
 2016 Guidance and 2017-2018 expectations

Q3 2016 Adjusted EPS Decreased $0.06
$0.38
$0.32
$0.02
($0.06)
($0.02)
Q3 2015 SBUs Other FX Q3 2016
- Argentine
Peso
- Kazakhstan
Tenge
- Restructuring
at Guacolda
in Chile
+ IPL and DPL in
the US
+ Gener in Chile
- Maritza in
Bulgaria
- Chivor in
Colombia

Q3 Financial Results
$ in Millions
 Margin was slightly lower due to
decreases in Europe and MCAC
offset by Andes and US
 Lower Adjusted PTC1 also reflects
restructuring of Guacolda in Chile
that benefitted the prior year
 Lower Proportional Free Cash
Flow1 also reflects the impact of
working capital in MCAC, where we
settled a large outstanding
receivable in the prior year
Proportional Free Cash Flow1
Decreased $221
$621
$400
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $43
$315 $272
Q3 2015 Q3 2016

Q3 Financial Results: US SBU
$ in Millions
 Margin improved due to
environmental upgrades and this
year’s rate case at IPL in Indiana
and higher availability at DPL in
Ohio
Increased $1
$218 $219
Q3 2015 Q3 2016
Adjusted PTC1
Increased $13
$101 $114
Q3 2015 Q3 2016

Q3 Financial Results: Andes SBU
$ in Millions
+ lower spot fuel and energy purchase
costs and start of commercial
operations at one unit of Cochrane in
Chile
- partially offset by lower energy
prices and generation in Colombia
and devaluation of the Argentine
Peso
Flow1 reflects lower VAT refunds in
Chile from projects under
construction
Decreased $42
$134
$92
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $16
$150 $134
Q3 2015 Q3 2016

Q3 Financial Results: Brazil SBU
$ in Millions
 Margin declined due to the
expiration of Tietê’s PPA at the end
of 2015
Decreased $7
$31
$24
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $9
$15
$6
Q3 2015 Q3 2016

Q3 Financial Results: MCAC SBU
$ in Millions
 Margin declined primarily due to
lower availability in Puerto Rico
lower interest income on overdue
receivables in the Dominican
Republic
Flow1 also reflects a large
settlement of overdue receivables
in the Dominican Republic in the
prior year
Decreased $168
$259
$91
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $18
$92 $74
Q3 2015 Q3 2016

Q3 Financial Results: Europe SBU
$ in Millions
 Margin declined due to contracted
capacity price reduction at Maritza
in Bulgaria and 36% devaluation of
the Kazakhstan Tenge
 Higher Proportional Free Cash
Flow1 also reflects higher
collections at Maritza
Increased $10
$33
$43
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $21
$45
$24
Q3 2015 Q3 2016

Q3 Financial Results: Asia SBU
$ in Millions
 Margin relatively flat Proportional Free Cash Flow1
Decreased $2
$50 $48
Q3 2015 Q3 2016
Adjusted PTC1
Decreased $2
$24 $22
Q3 2015 Q3 2016

 Remain in active discussions with staff and intervenors
 In October, amended ESP filing to propose Distribution Modernization Rider
of $145 per year over 7 years targeting Investment Grade rating at the utility
 Evidentiary hearings set to begin December 5, 2016
 Expect a ruling to be effective in the first quarter of 2017 that will support the
financial viability and credit profile of the business
Business Update
Regulatory Developments in Ohio – Dayton Power & Light (DP&L)

$240 $469
$966
$3,042
2016 2017 2018 2019 2020 2021 2022-2029
Improving Our Debt Profile
No Parent Debt Maturities1 Until 2019
($ in Millions, $4,717 Total Debt)
Improving Parent Leverage
Debt2/(Parent Free Cash Flow3 + Interest)
6.4x
5.1x
2011 2016
1. As of September 30, 2016. Excludes $275 million in temporary drawings on the revolver as of September 30, 2016.
2. Includes equity credit for a portion of our existing Trust Preferred III securities.
3. A non-GAAP financial measure. See Appendix for reconciliation and definition.

2016 Capital Allocation Plan
$ in Millions
1. Includes announced asset sale proceeds of: $40 million (Sonel, Kribi and Dibamba, Cameroon), $21 million (IPP4 partnership, Jordan), $9 million (Kelanitissa, Sri Lanka) and
$440 million (AES Sul, Brazil, which includes $25 million of dividend and is net of estimated working capital and transaction cost adjustments). A portion of the proceeds related
to the sale of AES Sul will be received in 2017 after meeting the required notice period for distributions.
Discretionary Cash – Uses
($1,430-$1,530)
Discretionary Cash – Sources
($1,430-$1,530)
$400
$525-
$625
$485
$20
$1,430-
$1,530
Beginning
Cash
Asset Sales
Proceeds
Parent FCF Return of
Capital
Total
Discretionary
Cash
2
1
$50
$339-
$439
$79
$290
$360
$312
Completed
Share
Buyback
Unallocated
Discretionary
Cash
Target Closing
Cash Balance
Investments in
Subsidiaries
Shareholder
Dividend
Debt
Prepayment
Maximizing Discretionary Cash to Increase Risk-Adjusted Returns
for Shareholders

 2016 guidance is based on currency and commodity forward curves as of September
30, 2016 and effective tax rate of a range of 29%-32%
 Expect growth to be stronger in 2018 than in 2017 as majority of our projects are
coming on-line in 2018
2. See Appendix Slide 57 for reconciliation of guidance metrics, including year-to-date differences with GAAP earnings.
Reaffirming 2016 Guidance and 2017-2018 Expectations
20162 2017-2018
Proportional Free Cash Flow1 $1,000-$1,350 At least 10% average
annual growth
Parent Free Cash Flow1 Expectation $525-$625
Consolidated Net Cash Provided by
Operating Activities
$2,000-$2,900 N/A
Adjusted EPS1 $0.95-$1.05
Maintaining 12%-16%
average annual growth

Attractive Growth in All
Key Metrics Through 2018
Strengthening
Our Balance Sheet
Capitalizing on Our
Advantaged Position
Conclusion
 Scale in key high-growth
markets
 Low-cost provider with
locational advantages
 Free cash flow
 Earnings per share
 Dividend
 Growing free cash flow
 Reducing debt
 Investment grade credit
stats by 2020
 Long-term, U.S. Dollar-
denominated contracts
 Increasing focus on gas
and renewables
Reshaping
Our Business Mix

1. A non-GAAP financial measure.
Appendix
 YTD Adjusted EPS1 Slide 30
 Q3 & YTD Adjusted EPS1 Roll-Up Slide 31
 YTD Proportional Free Cash Flow1 & Adjusted PTC1 Slides 32-38
 Listed Subs & Public Filers Slide 39
 SBU Modeling Disclosures Slides 40-41
 DPL Inc. Modeling Disclosures Slide 42
 DP&L and DPL Inc. Debt Maturities Slide 43
 Parent Only Cash Flow Slides 44-47
 Currencies and Commodities Slides 48-50
 AES Modeling Disclosures Slide 51
 Construction Program Slide 52
 Reconciliations Slides 53-57
 Assumptions & Definitions Slides 58-60

YTD 2016 Adjusted EPS1 Decreased $0.26
$0.90
$0.64
($0.04)
($0.09)
($0.10)
($0.04)
$0.01
YTD 2015 SBUs Other FX Tax Capital
Allocation/Asset
Sales
YTD 2016
- Kazakhstan
Tenge
- Argentine Peso
- Columbian Peso
- Restructuring
at Guacolda
in Chile
- Reversal of a
Liability at
Eletropaulo
- Chivor in
Colombia
- Tiete in
Brazil
+ IPL in the
US

Q3 and YTD 2016 Adjusted EPS1 Roll-Up
1. A non-GAAP financial measure. See Slides 55 and 56 for reconciliation to the nearest GAAP measure and “definitions”.
2. Includes $10 million and $59 million of after-tax equity in earnings for Q3 2016 and Q3 2015, respectively, and $24 million and $77 million for YTD 2016 and
YTD 2015, respectively.
Q3 2016 Q3 2015 Variance YTD 2016 YTD 2015 Variance
Adjusted PTC1
US $114 $101 $13 $257 $263 ($6)
Andes $134 $150 ($16) $279 $322 ($43)
Brazil $6 $15 ($9) $18 $97 ($79)
MCAC $74 $92 ($18) $197 $248 ($51)
Europe $24 $45 ($21) $127 $171 ($44)
Asia $22 $24 ($2) $70 $66 $4
Total SBUs $374 $427 ($53) $948 $1,167 ($219)
Corp/Other ($102) ($112) $10 ($331) ($330) ($1)
Total AES Adjusted
PTC1,2 $272 $315 ($43) $617 $837 ($220)
Adjusted Effective Tax Rate 24% 22% 33% 28%
Diluted Share Count 662 682 662 694
ADJUSTED EPS1 $0.32 $0.38 ($0.06) $0.64 $0.90 ($0.26)

YTD Financial Results
$ in Millions
 Margin declined due to lower
contributions from the US, Brazil,
Europe and MCAC
 Lower Adjusted PTC1 also reflects:
- Restructuring of Guacolda in Chile
+ Reduced interest expense at our US
utilities
Flow1 also reflects:
+ Settlement of outstanding
receivables at Maritza in Bulgaria
+ Higher collections at Eletropaulo and
Sul in Brazil
- Impact of working capital in MCAC,
where we settled a large outstanding
receivable in the prior year
Increased $122
$948 $1,070
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $220
$837
$617
YTD 2015 YTD 2016

YTD Financial Results: US SBU
$ in Millions
 Margin declined primarily due to
lower wholesale prices and lower
contributions from regulated
customers at DPL, partially offset
by this year’s rate case and
environmental upgrades at IPL in
Indiana
Decreased $8
$477 $469
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $6
$263 $257
YTD 2015 YTD 2016

YTD Financial Results: Andes SBU
$ in Millions
 Margin improved due to:
 Lower spot fuel and energy
purchase costs and start of
commercial operations at one unit of
Cochrane in Chile
 Partially offset by lower energy
prices in Colombia and the
devaluation of the Colombian and
Argentine Pesos
Increased $21
$131 $152
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $43
$322 $279
YTD 2015 YTD 2016

YTD Financial Results: Brazil SBU
$ in Millions
Flow1 reflects higher collections at
Eletropaulo and Sul
 Offset by lower margin due to:
- Expiration of Tietê’s PPA at the end
of 2015
- Reversal of a liability at Eletropaulo
that was favorable in 2015
Increased $142
($36)
$106
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $79
$97
$18
YTD 2015 YTD 2016

YTD Financial Results: MCAC SBU
$ in Millions
 Margin declined due to:
- Lower availability due to completed
outages in Mexico and Puerto Rico
Flow1 also reflects a large
settlement of overdue receivables
in the Dominican Republic in the
prior year
Decreased $293
$391
$98
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $51
$248 $197
YTD 2015 YTD 2016

YTD Financial Results: Europe SBU
$ in Millions
Flow1 reflects the settlement of
outstanding receivables at Maritza
in Bulgaria this year
 Offset by lower margin due to the
43% devaluation of the Kazakhstan
Tenge, and a contracted capacity
price reduction at Maritza following
successful settlement of
receivables
Increased $255
$207
$462
YTD 2015 YTD 2016
Adjusted PTC1
Decreased $44
$171 $127
YTD 2015 YTD 2016

YTD Financial Results: Asia SBU
$ in Millions
commencement of operations at
Mong Duong in Vietnam in April
2015
Flow1 also reflects lower working
capital requirements at Mong
Duong
Increased $51
$59
$110
YTD 2015 YTD 2016
Adjusted PTC1
Increased $4
$66 $70
YTD 2015 YTD 2016

This table provides financial data of those operating subsidiaries of AES that are publicly listed or have publicly filed financial information on a stand-alone basis. The table provides
a reconciliation of the subsidiary’s Adjusted PTC as it is included in AES consolidated Adjusted PTC with the subsidiary’s income/(loss) from continuing operations under US GAAP
and the subsidiary’s locally IFRS reported net income, if applicable. Readers should consult the subsidiary’s publicly filed reports for further details of such subsidiary’s results of
operations.
1. A non-GAAP financial measure. Reconciliation provided above. See “definitions” for descriptions of adjustments.
2. The listed subsidiary is a public filer in its home country and reports its financial results locally under IFRS. Accordingly certain adjustments presented under IFRS Reconciliation are required to account
for differences between US GAAP and local IFRS standards.
3. Total Adjusted PTC, US GAAP Income from continuing operations and intervening adjustments are calculated before the elimination of inter-segment transactions such as revenue and expenses related
to the transfer of electricity from AES generation plants to AES utilities within Brazil.
4. Represents the income/(loss) from continuing operations of the subsidiary included in the consolidated operating results of AES under US GAAP.
5. Adjustment to depreciation and amortization expense represents additional expense required due primarily to basis differences of long-lived and intangible assets under IFRS for each reporting period.
6. Adjustment to taxes represents mainly differences relating to the depreciation for the difference in cost basis of PP&E (Eletropaulo and Tietê).
Q3 2016 Adjusted PTC1: Reconciliation to Public Financials
of Listed Subsidiaries & Public Filers
AES SBU/Reporting Country US Andes/Chile Brazil
AES Company IPL DPL AES Gener2 Eletropaulo2 Tietê2
$ in Millions
Q3
2016
Q3
2015
Q3
2016
Q3
2015
Q3
2016
Q3
2015
Q3
2016
Q3
2015
Q3
2016
Q3 2015
US GAAP Reconciliation
AES Business Unit Adjusted Earnings1,3 $33 $20 $17 $12 $63 $92 ($1) - $8 $11
Adjusted PTC1,3 Public Filer (Stand-alone) $50 $35 $27 $14 $89 $119 ($4) ($1) $12 $17
Impact of AES Differences from Public Filings - - - - - - - - - -
AES Business Unit Adjusted PTC1 $50 $35 $27 $14 $89 $119 ($4) ($1) $12 $17
Unrealized Derivatives (Losses)/Gains - - $1 ($3) $1 $3 - - - -
Unrealized Foreign Currency Transaction Losses - - - - ($4) - - - - -
Impairment Losses - - - - - - - - - -
Disposition/Acquisition Gains - - - - - - - - - -
Loss on Extinguishment of Debt - ($2) - ($2) - ($14) - - - -
Non-Controlling Interest before Tax $23 $12 - $1 $43 $40 ($22) ($9) $37 $59
Income Tax Benefit/(Expenses) ($25) ($16) ($12) ($1) ($40) ($24) $17 $3 ($16) ($25)
US GAAP Income/(Loss) from Continuing
Operations4 $48 $29 $16 $9 $89 $124 ($9) ($7) $33 $51
IFR($8)S Reconciliation
Adjustment to Depreciation & Amortization5 ($10) ($10) ($6) ($8) ($4) ($4)
Adjustment to Regulatory Liabilities & Assets - - - - - -
Adjustment to Taxes6 $14 $1 ($11) ($4) $2 $1
Other Adjustments ($5) ($15) $16 $18 ($1) ($1)
IFRS Net Income $88 $100 ($10) ($1) $30 $47
BRL-USD Implied Exchange Rate 3.3037 3.5366 3.2458 3.5295

$ in Millions
1. A non-GAAP financial measure. See reconciliation to the nearest GAAP measure on Slide 55 and “definitions”.
Q3 2016 Modeling Disclosures
Adjusted
PTC1
Interest Expense Interest Income Depreciation & Amortization
Consolidated
Adjustment
Factor
Proportional Consolidated
Adjustment
Factor
Proportional Consolidated
Adjustment
Factor
Proportional
US $114 $60 ($7) $53 - - - $115 ($18) $97
DPL $27 $27 - $27 - - - $29 - $29
IPL $50 $24 ($7) $17 - - - $55 ($17) $38
Andes $134 $46 ($16) $30 $13 - $13 $57 ($20) $37
AES Gener $89 $44 ($16) $28 $2 ($1) $1 $55 ($20) $35
Brazil $6 $86 ($71) $15 $61 ($50) $11 $37 ($30) $7
Tietê $12 $17 ($13) $4 $8 ($6) $2 $8 ($6) $2
Eletropaulo ($4) $69 ($58) $11 $51 ($43) $8 $30 ($25) $5
MCAC $74 $42 ($7) $35 $2 - $2 $42 ($10) $32
Europe $24 $18 ($4) $14 - - $30 ($5) $25
Asia $22 $28 ($14) $14 $34 ($17) $17 $8 ($4) $4
Subtotal $374 $280 ($119) $161 $110 ($67) $43 $289 ($87) $202
Corp/Other ($102) $74 - $74 - - - $3 - $3
TOTAL $272 $354 ($119) $235 $110 ($67) $43 $292 ($87) $205

$ in Millions
1. In addition to total debt, Eletropaulo has $831 million of pension plan liabilities. AES owns 16% of Eletropaulo.
Q3 2016 Modeling Disclosures
Total Debt
Cash & Cash Equivalents, Restricted Cash, Short-Term Investments,
Debt Service Reserves & Other Deposits
Consolidated Adjustment Factor Proportional Consolidated Adjustment Factor Proportional
US $5,067 ($758) $4,309 $354 ($21) $333
DPL $1,914 - $1,914 $133 - $133
IPL $2,523 ($757) $1,766 $54 ($16) $38
Andes $4,163 ($1,715) $2,448 $494 ($201) $293
AES Gener $3,942 ($1,714) $2,228 $459 ($201) $258
Brazil1 $1,551 ($1,266) $285 $806 ($620) $186
Tietê $428 ($324) $104 $156 ($118) $38
Eletropaulo $1,122 ($941) $181 $565 ($474) $91
MCAC $2,398 ($334) $2,064 $494 ($81) $413
EMEA $1,007 ($255) $752 $182 ($32) $150
Asia $1,701 ($833) $868 $320 ($154) $166
Subtotal $15,887 ($5,161) $10,726 $2,650 ($1,109) $1,541
Corp/Other $4,944 - $4,944 $206 - $206
TOTAL $20,831 ($5,161) $15,670 $2,856 ($1,109) $1,747

Based on Market Conditions and Hedged Position as of September 30,
2016
1. Includes capacity premium performance results.
2. Balance of Year 2016 (October-December), Full Year 2017 and Full Year 2018 based on forward curves as of September 30, 2016.
DPL Inc. Modeling Disclosures
Balance of Year
2016
Full Year 2017 Full Year 2018
Volume Production (TWh) 3.4 13.9 13.4
% Volume Hedged ~58% ~57% 0%
Average Hedged Dark Spread ($/MWh) $10.93 $12.95 N/A
EBITDA Generation Business1 ($ in Millions) $70 to $120 per year
EBITDA DPL Inc. including Generation and T&D
($ in Millions)
~$340 to $350 million per year
Reference Prices2
Henry Hub Natural Gas ($/mmbtu) $3.00 $3.09 2.91
AEP-Dayton Hub ATC Prices ($/MWh) $29 $31 $29
EBITDA Sensitivities (with Existing Hedges) ($ in Millions)
+10% AD Hub Energy Price ATC ($/MWh) $4 $19 $39
-10% AD Hub Energy Price ATC ($/MWh) ($4) ($19) ($39)

$ in Millions
Non-Recourse Debt at DP&L and DPL Inc.
Series Interest
Rate Maturity
Amount
Outstanding as of
September 30,
2016
Remarks
2016 FMB Secured B Loan Variable Aug. 2022 $445.0 ● Redeemable at 101% of par
2006 OH Air Quality PCBs 4.8% Sept. 2036 $100.0 ● Non-callable; at par in Sept. 2016
2015 Direct Purchase Tax Exempt TL Variable Aug. 2020 (put) $200.0 ● Redeemable at par on any day
Total Pollution Control Various Various $300.0
Wright-Patterson AFB Note 4.2% Feb. 2061 $18.0 ● No prepayment option
2015 DP&L Revolver Variable July 2020 - ● Pre-payable on any day
DP&L Preferred 3.8% N/A $22.91 ● Redeemable at pre-established
premium
Total DP&L $785.9
2018 Term Loan Variable May 2018 $125.0 ● No prepayment penalty
2016 Senior Unsecured 6.5% Oct. 2016 $57.01 ● Callable make-whole T+50
2019 Senior Unsecured 6.75% Oct. 2019 $200.0 ● Callable at make-whole T+50
2021 Senior Unsecured 7.25% Oct. 2021 $780.0 ● Callable at make-whole T+50
Total Senior Unsecured Bonds Various Various $1,037.0
2015 DPL Revolver Variable July 2020 - ● Pre-payable on any day
2001 Cap Trust II Securities 8.125% Sept. 2031 $15.6 ● Non-callable
Total DPL Inc. $1,177.6
TOTAL $1,963.5
1. Subsequent to September 30, 2016, all of DP&L Preferred shares ($22.9 million) and DPL, Inc. 2016 Senior Unsecured Bonds ($57 million) were redeemed
in full.

1. See “definitions”.
2. A non-GAAP financial measure. See “definitions”.
Parent Sources and Uses of Liquidity
$ in Millions
Q3 YTD
2016 2015 2016 2015
SOURCES
Total Subsidiary Distributions1 $265 $93 $686 $502
Proceeds from Asset Sales, Net $1 $90 $53 $326
Financing Proceeds, Net - - $495 $570
Increased/(Decreased) Credit Facility Commitments - - - -
Issuance of Common Stock, Net $1 - $1 $5
Total Returns of Capital Distributions & Project Financing Proceeds $4 - $35 $8
Beginning Parent Company Liquidity2 $763 $779 $1,137 $1,246
Total Sources $1,034 $962 $2,407 $2,657
USES
Repayments of Debt ($196) - ($807) ($915)
Shareholder Dividend ($72) ($68) ($218) ($209)
Repurchase of Equity - ($101) ($79) ($407)
Investments in Subsidiaries, Net ($95) ($7) ($343) ($72)
Cash for Development, Selling, General & Administrative and Taxes ($33) ($63) ($187) ($178)
Cash Payments for Interest ($73) ($74) ($225) ($240)
Changes in Letters of Credit and Other, Net ($4) ($18) $13 ($5)
Ending Parent Company Liquidity2 ($561) ($631) ($561) ($631)
Total Uses ($1,034) ($962) ($2,407) ($2,657)

Subsidiary Distributions1 by SBU
Q3 2016 YTD 2016
US $41 $159
Andes $29 $72
Brazil $8 $72
MCAC $123 $132
Europe $46 $202
Asia $17 $28
Corporate & Other2 $1 $21
TOTAL $265 $686
2. Corporate & Other includes Global Insurance.
Q3 and YTD 2016 Subsidiary Distributions1
Top Ten Subsidiary Distributions1 by Business
Q3 2016 YTD 2016
Business Amount Business Amount Business Amount Business Amount
Andres (MCAC) $88 Mong Duong (Asia) $17
Maritza East
(Europe)
$143 US Holdco (US) $54
Maritza East
(Europe)
$35 Itabo (MCAC) $12 Andres (MCAC) $89 Altai (Europe) $24
IPALCO (US) $34 Elsta (Europe) $8 IPALCO (US) $86
Global Insurance
(Corp)
$20
Gener (Andes) $26
AES Holdings Brazil
(Brazil)
$8
AES Holdings Brazil
(Brazil)
$72 Mong Duong (Asia) $19
Panama (MCAC) $17
Mountain View I &II
(US)
$6 Gener (Andes) $57 Panama (MCAC) $17
$ in Millions

$ in Millions
3. Qualified Holding Company. See “assumptions”.
Reconciliation of Subsidiary Distributions1 and Parent
Liquidity2
Quarter Ended
September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
Total Subsidiary Distributions1 to Parent & QHCs3 $265 $337 $85 $555
Total Return of Capital Distributions to Parent & QHCs3 $4 $14 $16 -
Total Subsidiary Distributions1 & Returns of Capital to
Parent
$269 $351 $101 $555
Balance as of
September 30,
2016
June 30,
2016
March 31,
2016
December 31,
2015
Cash at Parent & QHCs3 $42 $30 $17 $400
Availability Under Credit Facilities $519 $733 $658 $738
Ending Liquidity $561 $763 $675 $1,138

$ in Millions
2. Includes equity credit for a portion of our existing Trust Preferred III securities.
Reconciliation of Parent Leverage
2011 2016
Parent Free Cash Flow1 (a) $586 $575
Interest (b) $390 $300
Parent Free Cash Flow1 before Interest (a + b) $976 $875
Debt2 $6,256 $4,458
DEBT2/(PARENT FREE CASH FLOW1 + INTEREST) 6.4x 5.1x

Interest Rates1
Currencies
Commodity
Sensitivity
 100 bps move in interest rates over year-to-go 2016 is equal to a change in EPS of approximately $0.005
10% appreciation in USD against the
following key currencies is equal to the
following negative EPS impacts:
2016 YTG
Average Rate Sensitivity
Argentine Peso (ARS) 15.82 Less than $0.005
Brazilian Real (BRL) 3.32 Less than $0.005
Colombian Peso (COP) 2,913 Less than $0.005
Euro (EUR) 1.13 Less than $0.005
Great British Pound (GBP) 1.30 Less than $0.005
Kazakhstan Tenge (KZT) 340 Less than $0.005
10% increase in commodity prices is
forecasted to have the following EPS
impacts:
2016 YTG
Average Rate Sensitivity
NYMEX Coal $43/ton
$0.005, negative correlation
Rotterdam Coal (API 2) $69/ton
NYMEX WTI Crude Oil $48/bbl
Less than $0.005, positive correlation
IPE Brent Crude Oil $49/bbl
NYMEX Henry Hub Natural Gas $3.0/mmbtu
Less than $0.005, positive correlation
UK National Balancing Point Natural Gas £0.42/therm
US Power (DPL) – PJM AD Hub $ 29/MWh $0.005, positive correlation
Note: Guidance provided on November 4, 2016. Sensitivities are provided on a standalone basis, assuming no change in the other factors, to illustrate the
magnitude and direction of changing market factors on AES’ results. Estimates show the impact the year-to-go 2016 Adjusted EPS. Actual results may differ from
the sensitivities provided due to execution of risk management strategies, local market dynamics and operational factors. Full year 2016 guidance is based on
currency and commodity forward curves and forecasts as of September 30, 2016. There are inherent uncertainties in the forecasting process and actual results
may differ from projections. The Company undertakes no obligation to update the guidance presented today. Please see Item 3 of the Form 10-Q for a more
complete discussion of this topic. AES has exposure to multiple coal, oil, and natural gas, and power indices; forward curves are provided for representative liquid
markets. Sensitivities are rounded to the nearest ½ cent per share.
1. The move is applied to the floating interest rate portfolio balances as of September 30, 2016.
2016 Guidance Estimated Sensitivities

2016 Foreign Exchange (FX) Risk Mitigated Through
Structuring of Our Businesses and Active Hedging
1. Before Corporate Charges. A non-GAAP financial measure. See “definitions”.
2. Sensitivity represents full year 2016 exposure to a 10% appreciation of USD relative to foreign currency as of December 31, 2015.
3. Andes includes Argentina and Colombia businesses only due to limited translational impact of USD appreciation to Chilean businesses.
2016 Full Year FX Sensitivity2,3 by
SBU (Cents Per Share)
1.0
0.5
1.0
1.5
0.5
0.5
1.0
US Andes Brazil MCAC Europe Asia CorTotal
FX Risk After Hedges Impact of FX Hedges
2016 Adjusted PTC1
by Currency Exposure
USD-
Equivalent,
74%
BRL, 3%
COP, 8%
EUR, 5%
ARS, 3%
KZT, 3%
Other FX,
3%
 2016 correlated FX risk after hedges is $0.015 for 10% USD appreciation
 74% of 2016 earnings effectively USD
 USD-based economies (i.e. U.S., Panama)
 Structuring of our contracts
 FX risk mitigated on a rolling basis by shorter-term active FX hedging programs

2. Domestic and International sensitivities are combined and assumes each fuel category moves 10%. Adjusted EPS is negatively correlated to coal price
movement, and positively correlated to gas, oil and power price movements.
 Mostly hedged through 2016, more open positions in a longer term is the primary
driver of increase in commodity sensitivity.
Commodity Exposure is Largely Hedged Through 2016.
In the Medium to Long Term, Long on US Power and Oil.
Full Year 2018 Adjusted EPS1 Commodity Sensitivity2 for 10%
Change in Commodity Prices
(4.0)
(2.0)
0.0
2.0
4.0
6.0
Coal Gas Oil DPL Power
CentsPerShare

$ in Millions
AES Modeling Disclosures
2016 Assumptions
Parent Company Cash Flow Assumptions
Subsidiary Distributions (a) $1,060-$1,160
Cash Interest (b) $300
Cash for Development, General & Administrative
and Tax (c)
$235
Parent Free Cash Flow1 (a – b – c) $525-$625

$ in Millions, Unless Otherwise Stated
1. Based on projections. See our 2015 Form 10-K for further discussion of development and construction risks. Based on 3-year average contributions from all
projects under construction and IPL wastewater upgrades, once all projects under construction are completed.
Attractive Returns from Construction Pipeline
Project Country AES Ownership Fuel
Gross
MW
Expected
COD
Total Capex
Total
AES
Equity
ROE Comments
Construction Projects Coming On-Line 2016-2019
Eagle Valley CCGT US-IN 70% Gas 671 1H 2017 $590 $186
DPP Conversion
Dominican
Republic
90% Gas 122 1H 2017 $260 $0
IPL Wastewater US-IN 70% Coal 2H 2017 $224 $71
Environmental (NPDES)
upgrades of 1,864 MW
OPGC 2 India 49% Coal 1,320 1H 2018 $1,585 $227
Colón Panama 50% Gas 380 1H 2018 $995 $205
Regasification and LNG
storage tank expected on-line
in 2019
Alto Maipo Chile 40% Hydro 531
2H 2018/
1H 2019
$2,053 $335
Excluding expected 10%-20%
cost over-run
Masinloc 2 Philippines 51% Coal 335 1H 2019 $740 $110
Total 3,891 $6,447 $1,134
ROE1 ~14%
Weighted average; net
income divided by AES
equity contribution
CASH YIELD1 ~14%
Weighted average;
subsidiary distributions
divided by AES equity
contribution

$ in Millions
1. A non-GAAP financial measure as reconciled above. See “definitions”.
2. Includes capital expenditures under investing and financing activities.
Reconciliation of Q3 Capex and Free Cash Flow1
Consolidated Q3
2016 2015
Operational Capex (a) $144 $111
Environmental Capex (b) $43 $63
Maintenance Capex (a + b) $187 $174
Growth Capex (c) $349 $371
Total Capex2 (a + b + c) $536 $545
Consolidated Q3 Proportional1 Q3
2016 2015 2016 2015
Operating Cash Flow $819 $915 $506 $677
Add: Capital Expenditures Related
to Service Concession Assets
$1 $77 $1 $39
Less: Maintenance Capex, net of
Reinsurance Proceeds and Non-
Recoverable Environmental
Capex
$155 $128 $107 $95
Free Cash Flow1 $665 $864 $400 $621

$ in Millions
1. A non-GAAP financial measure as reconciled above. See “definitions”.
2. Includes capital expenditures under investing and financing activities.
Reconciliation of YTD Capex and Free Cash Flow1
Consolidated YTD
2016 2015
Operational Capex (a) $464 $417
Environmental Capex (b) $198 $193
Maintenance Capex (a + b) $662 $610
Growth Capex (c) $1,216 $1,187
Total Capex2 (a + b + c) $1,878 $1,797
Consolidated YTD Proportional1 YTD
2016 2015 2016 2015
Operating Cash Flow $2,182 $1,505 $1,408 $1,216
Add: Capital Expenditures Related
to Service Concession Assets
$27 $148 $14 $76
Less: Maintenance Capex, net of
Reinsurance Proceeds and Non-
Recoverable Environmental
Capex
$500 $460 $352 $344
Free Cash Flow1 $1,709 $1,193 $1,070 $948

2. NCI is defined as Noncontrolling Interests.
3. Diluted EPS calculation includes income from continuing operations, net of tax, of $176 million less the $5 million adjustment to retained earnings to record the DP&L redeemable preferred stock at its
redemption value as of September 30, 2016.
4. Amount primarily relates to the gain on sale of Armenia Mountain of $22 million, or $0.03 per share.
5. Amount primarily relates to the asset impairment at Buffalo Gap I of $78 million ($23 million, or $0.03 per share, net of NCI).
6. Amount primarily relates to asset impairments at Buffalo Gap III of $118 million ($27 million, or $0.04 per share, net of NCI); and $113 million at Kilroot ($112 million, or $0.16 per share, net of NCI).
7. Amount primarily relates to losses on early retirement of debt at the Parent Company of $17 million, or $0.02 per share; and an adjustment of $5 million, or $0.01 per share to record the DP&L
redeemable preferred stock at its redemption value.
8. Amount primarily relates to the per share income tax benefit associated with impairment losses of $46 million, or $0.06 in the three months ended September 30, 2015.
Reconciliation of Q3 Adjusted PTC1 and Adjusted EPS1
Q3 2016 Q3 2015
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Income (Loss) from Continuing Operations Attributable to AES and
Diluted EPS
$176 $0.263 $175 $0.26
Add: Income Tax Expense (Benefit) from Continuing Operations
Attributable to AES
$47 $10
Pre-Tax Contribution $223 $185
Adjustments
Unrealized Derivative Losses/(Gains) $5 - ($12) ($0.02)
Unrealized Foreign Currency Transaction Losses/(Gains) $3 $0.01 $5 $0.01
Disposition/Acquisition Losses/(Gains) ($3) - ($23) ($0.03)4
Impairment Losses $24 $0.035 $139 $0.206
Loss on Extinguishment of Debt $20 $0.047 $21 $0.03
Less: Net Income Tax Benefit ($0.02) ($0.07)8
ADJUSTED PTC1 & ADJUSTED EPS1 $272 $0.32 $315 $0.38

2. NCI is defined as Noncontrolling Interests.
3. Diluted EPS calculation includes income from continuing operations, net of tax, of $208 million less the $5 million adjustment to retained earnings to record the DP&L redeemable preferred stock at its
redemption value as of September 30, 2016.
4. Amount primarily relates to the gain on sale of DPLER of $22 million, or $0.03 per share; offset by the loss on deconsolidation of UK Wind of $20 million, or $0.03 per share.
5. Amount primarily relates to the gain on sale of Armenia Mountain of $22 million, or $0.03 per share.
6. Amount primarily relates to asset impairments at DPL of $235 million, or $0.36 per share; $159 million at Buffalo Gap II ($49 million, or $0.07 per share, net of NCI); and $78 million at Buffalo Gap I ($23
million, or $0.03 per share, net of NCI).
7. Amount primarily relates to asset impairments at Buffalo Gap III of $118 million ($27 million, or $0.04 per share, net of NCI); $113 million at Kilroot ($112 million, or $0.16 per share, net of NCI); and $38
million at UK Wind ($30 million or $0.04 per share, net of NCI).
8. Amount primarily relates to losses on early retirement of debt at the Parent Company of $19 million, or $0.03 per share; and an adjustment of $5 million, or $0.01 per share, to record the DP&L
redeemable preferred stock at its redemption value.
9. Amount primarily relates to losses on early retirement of debt at the Parent Company of $113 million, or $0.16 per share; and $22 million at IPL ($16 million or $0.02 per share, net of NCI).
10. Amount primarily relates to the per share income tax benefit associated with impairment losses of $123 million, or $0.19 in the nine months ended September 30, 2016.
11. Amount primarily relates to the per share income tax benefit associated with losses on extinguishment of debt of $51 million, or $0.08 and impairment losses of $48 million, or $0.07 in the nine months
ended September 30, 2015.
Reconciliation of YTD Adjusted PTC1 and Adjusted EPS1
YTD 2016 YTD 2015
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Net of NCI2
Per Share
(Diluted) Net
of NCI2
Income (Loss) from Continuing Operations Attributable to AES and
Diluted EPS
$208 $0.313 $403 $0.58
Add: Income Tax Expense (Benefit) from Continuing Operations
Attributable to AES
$66 $113
Pre-Tax Contribution $274 $516
Adjustments
Unrealized Derivative Losses/(Gains) $1 - ($29) ($0.04)
Unrealized Foreign Currency Transaction Losses/(Gains) $12 $0.01 $48 $0.07
Disposition/Acquisition Losses/(Gains) ($5) -4 ($32) ($0.05)5
Impairment Losses $309 $0.476 $175 $0.257
Loss on Extinguishment of Debt $26 $0.058 $159 $0.239
Less: Net Income Tax Benefit ($0.20)10 ($0.14)11
ADJUSTED PTC1 & ADJUSTED EPS1 $617 $0.64 $837 $0.90

2. In providing its full year 2016 Adjusted EPS guidance, the Company notes that there could be differences between expected reported earnings and estimated operating
earnings for matters such as, but not limited to: (a) unrealized losses related to derivative transactions, estimated to have no impact on Adjusted EPS; (b) unrealized foreign
currency losses, estimated to be $12 million; (c) gains due to dispositions and acquisitions of business interests, estimated to be $3 million; (d) losses due to impairments,
estimated to be $186 million, related to DP&L and Buffalo Gap I & II; and (e) costs due to the early retirement of debt, estimated to be $18 million. The amounts set forth above
are as of September 30, 2016. At this time, management is not able to estimate the aggregate impact, if any, of these items on reported earnings. Accordingly, the Company is
not able to provide a corresponding GAAP equivalent for its Adjusted EPS guidance.
Reconciliation of 2016 Guidance
2016 Guidance
Proportional Free Cash Flow1 $1,000-$1,350
Consolidated Net Cash Provided by Operating
Activities
$2,000-$2,900
Adjusted EPS1, 2 $0.95-$1.05
Reconciliation Consolidated Adjustment Factor Proportional
Consolidated Net Cash
Provided by Operating
Activities (a)
$2,000-$2,900 $500-$1,050 $1,500-$1,850
Maintenance &
Environmental Capital
Expenditures (b)
$600-$800 $200 $400-$600
Free Cash Flow1 (a - b) $1,300-$2,200 $300-$850 $1,000-$1,350
 Commodity and foreign currency exchange rates and forward curves as of
September 31, 2016

Assumptions
Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not
limited to: (a) no unforeseen external events such as wars, depressions, or economic or political disruptions occur; (b)
businesses continue to operate in a manner consistent with or better than prior operating performance, including
achievement of planned productivity improvements including benefits of global sourcing, and in accordance with the
provisions of their relevant contracts or concessions; (c) new business opportunities are available to AES in sufficient
quantity to achieve its growth objectives; (d) no material disruptions or discontinuities occur in the Gross Domestic
Product (GDP), foreign exchange rates, inflation or interest rates during the forecast period; and (e) material business-
specific risks as described in the Company’s SEC filings do not occur individually or cumulatively. In addition, benefits
from global sourcing include avoided costs, reduction in capital project costs versus budgetary estimates, and projected
savings based on assumed spend volume which may or may not actually be achieved. Also, improvement in certain Key
Performance Indicators (KPIs) such as equivalent forced outage rate and commercial availability may not improve
financial performance at all facilities based on commercial terms and conditions. These benefits will not be fully reflected
in the Company’s consolidated financial results.
The cash held at qualified holding companies (“QHCs”) represents cash sent to subsidiaries of the Company domiciled
outside of the U.S. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the Parent
Company, however, cash held at qualified holding companies does not reflect the impact of any tax liabilities that may
result from any such cash being repatriated to the Parent Company in the U.S. Cash at those subsidiaries was used for
investment and related activities outside of the U.S. These investments included equity investments and loans to other
foreign subsidiaries as well as development and general costs and expenses incurred outside the U.S. Since the cash
held by these QHCs is available to the Parent, AES uses the combined measure of subsidiary distributions to Parent and
QHCs as a useful measure of cash available to the Parent to meet its international liquidity needs. AES believes that
unconsolidated parent company liquidity is important to the liquidity position of AES as a parent company because of the
non-recourse nature of most of AES’ indebtedness.

Definitions
 Adjusted Earnings Per Share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses of both
consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses due to dispositions and acquisitions of business interests, (d) losses due to impairments, and (e) costs due to the early
retirement of debt, adjusted for the same gains or losses excluded from consolidated entities. The GAAP measure most comparable to Adjusted EPS is diluted earnings per
share from continuing operations. AES believes that Adjusted EPS better reflects the underlying business performance of the Company and is considered in the Company’s
internal evaluation of financial performance. Factors in this determination include the variability due to unrealized gains or losses related to derivative transactions, unrealized
foreign currency gains or losses, losses due to impairments and strategic decisions to dispose or acquire business interests or retire debt, which affect results in a given
period or periods. Adjusted EPS should not be construed as an alternative to diluted earnings per share from continuing operations, which is determined in accordance with
GAAP.
 Adjusted Pre-Tax Contribution (a non-GAAP financial measure) represents pre-tax income from continuing operations attributable to AES excluding gains or losses of both
consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses due to dispositions and acquisitions of business interests, (d) losses due to impairments, and (e) costs due to the early
retirement of debt, adjusted for the same gains or losses excluded from consolidated entities. It includes net equity in earnings of affiliates, on an after-tax basis. The GAAP
measure most comparable to Adjusted PTC is income from continuing operations attributable to AES. AES believes that Adjusted PTC better reflects the underlying
business performance of the Company and is considered in the Company’s internal evaluation of financial performance. Factors in this determination include the variability
due to unrealized gains or losses related to derivative transactions, unrealized foreign currency gains or losses, losses due to impairments and strategic decisions to dispose
or acquire business interests or retire debt, which affect results in a given period or periods. Earnings before tax represents the business performance of the Company
before the application of statutory income tax rates and tax adjustments, including the affects of tax planning, corresponding to the various jurisdictions in which the
Company operates. Adjusted PTC should not be construed as an alternative to income from continuing operations attributable to AES, which is determined in accordance
with GAAP.
 Free Cash Flow (a non-GAAP financial measure) is defined as net cash from operating activities less maintenance capital expenditures (including non-recoverable
environmental capital expenditures), net of reinsurance proceeds from third parties. AES believes that free cash flow is a useful measure for evaluating our financial
condition because it represents the amount of cash provided by operations less maintenance capital expenditures as defined by our businesses, that may be available for
investing or for repaying debt. Free cash flow should not be construed as an alternative to net cash from operating activities, which is determined in accordance with GAAP.
 Net Debt (a non-GAAP financial measure) is defined as current and non-current recourse and non-recourse debt less cash and cash equivalents, restricted cash, short term
investments, debt service reserves and other deposits. AES believes that net debt is a useful measure for evaluating our financial condition because it is a standard industry
measure that provides an alternate view of a company’s indebtedness by considering the capacity of cash. It is also a required component of valuation techniques used by
management and the investment community.
 Parent Company Liquidity (a non-GAAP financial measure) is defined as cash at the Parent Company plus availability under corporate credit facilities plus cash at qualified
holding companies (“QHCs”). AES believes that unconsolidated Parent Company liquidity is important to the liquidity position of AES as a Parent Company because of the
non-recourse nature of most of AES’ indebtedness.
 Parent Free Cash Flow (a non-GAAP financial measure) should not be construed as an alternative to Net Cash Provided by Operating Activities which is determined in
accordance with GAAP. Parent Free Cash Flow is equal to Subsidiary Distributions less cash used for interest costs, development, general and administrative activities, and
tax payments by the Parent Company. Parent Free Cash Flow is used for dividends, share repurchases, growth investments, recourse debt repayments, and other uses by
the Parent Company.

Definitions (Continued)
 Proportional Free Cash Flow – The Company defines Proportional Free Cash Flow as cash flows from operating activities (adjusted for service concession asset capital
expenditures), less maintenance capital expenditures (including non-recoverable environmental capital expenditures and net of reinsurance proceeds), adjusted for the
estimated impact of noncontrolling interests. The proportionate share of cash flows and related adjustments attributable to noncontrolling interests in our subsidiaries
comprise the proportional adjustment factor. Upon the Company’s adoption of the accounting guidance for service concession arrangements effective January 1, 2015,
capital expenditures related to service concession assets that would have been classified as investing activities on the Condensed Consolidated Statement of Cash Flows
are now classified as operating activities.
The Company excludes environmental capital expenditures that are expected to be recovered through regulatory, contractual or other mechanisms. An example of
recoverable environmental capital expenditures is IPL’s investment in MATS-related environmental upgrades that are recovered through a tracker.
The GAAP measure most comparable to proportional free cash flow is cash flows from operating activities. We believe that proportional free cash flow better reflects the
underlying business performance of the Company, as it measures the cash generated by the business, after the funding of maintenance capital expenditures, that may be
available for investing or repaying debt or other purposes. Factors in this determination include the impact of noncontrolling interests, where AES consolidates the results of
a subsidiary that is not wholly owned by the Company.
 Proportional Metrics – The Company is a holding company that derives its income and cash flows from the activities of its subsidiaries, some of which are not wholly-owned
by the Company. Accordingly, the Company has presented certain financial metrics which are defined as Proportional (a non-GAAP financial measure) to account for the
Company’s ownership interest.
Proportional metrics present the Company’s estimate of its share in the economics of the underlying metric. The Company believes that the Proportional metrics are useful
to investors because they exclude the economic share in the metric presented that is held by non-AES shareholders. For example, Operating Cash Flow is a GAAP metric
which presents the Company’s cash flow from operations on a consolidated basis, including operating cash flow allocable to noncontrolling interests. Proportional Operating
Cash Flow removes the share of operating cash flow allocable to noncontrolling interests and therefore may act as an aid in the valuation the Company. Beginning in Q1
2015, the definition was revised to also exclude cash flows related to service concession assets.
Proportional metrics are reconciled to the nearest GAAP measure. Certain assumptions have been made to estimate our proportional financial measures. These
assumptions include: (i) the Company’s economic interest has been calculated based on a blended rate for each consolidated business when such business represents
multiple legal entities; (ii) the Company’s economic interest may differ from the percentage implied by the recorded net income or loss attributable to noncontrolling interests
or dividends paid during a given period; (iii) the Company’s economic interest for entities accounted for using the hypothetical liquidation at book value method is 100%; (iv)
individual operating performance of the Company’s equity method investments is not reflected and (v) inter-segment transactions are included as applicable for the metric
presented.
The proportional adjustment factor, proportional maintenance capital expenditures (net of reinsurance proceeds) and proportional non-recoverable environmental capital
expenditures are calculated by multiplying the percentage owned by noncontrolling interests for each entity by its corresponding consolidated cash flow metric and are
totaled to the resulting figures. For example, Parent Company A owns 20% of Subsidiary Company B, a consolidated subsidiary. Thus, Subsidiary Company B has an 80%
noncontrolling interest. Assuming a consolidated net cash flow from operating activities of $100 from Subsidiary B, the proportional adjustment factor for Subsidiary B would
equal $80 (or $100 x 80%). The Company calculates the proportional adjustment factor for each consolidated business in this manner and then sums these amounts to
determine the total proportional adjustment factor used in the reconciliation. The proportional adjustment factor may differ from the proportion of income attributable to
noncontrolling interests as a result of (a) non-cash items which impact income but not cash and (b) AES’ ownership interest in the subsidiary where such items occur.
 Subsidiary Liquidity (a non-GAAP financial measure) is defined as cash and cash equivalents and bank lines of credit at various subsidiaries.
 Subsidiary Distributions should not be construed as an alternative to Net Cash Provided by Operating Activities which is determined in accordance with GAAP. Subsidiary
Distributions are important to the Parent Company because the Parent Company is a holding company that does not derive any significant direct revenues from its own
activities but instead relies on its subsidiaries’ business activities and the resultant distributions to fund the debt service, investment and other cash needs of the holding
company. The reconciliation of the difference between the Subsidiary Distributions and Net Cash Provided by Operating Activities consists of cash generated from operating
activities that is retained at the subsidiaries for a variety of reasons which are both discretionary and non-discretionary in nature. These factors include, but are not limited to,
retention of cash to fund capital expenditures at the subsidiary, cash retention associated with non-recourse debt covenant restrictions and related debt service requirements
at the subsidiaries, retention of cash related to sufficiency of local GAAP statutory retained earnings at the subsidiaries, retention of cash for working capital needs at the
subsidiaries, and other similar timing differences between when the cash is generated at the subsidiaries and when it reaches the Parent Company and related holding
companies.

AES Third Quarter 2016 Financial Review

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AES Third Quarter 2016 Financial Review